Tuesday, October 5, 2010

Coming to the surface!!

YIPPEE!!!!  Per Zillow.com, our house is FINALLY out from underwater on the mortgage!!!!!!  Per Zillow, the house value is 191k, and we owe 181k.   I wouldn't say we are safely on the life boat, huddled under our Coast Guard blanket.....but the life vest is on and we are treading water.

With this said...I am trying to find a little extra money in the budget for a possible HUGE change that may come on down the pike (more on that another time).  Time to revisit the mortgage.

We currently pay 7.5% interest, and know we can do better.   We were locked into our current mortgage until October of last year do to a 5% prepayment penalty.  Now that we are no longer underwater, we can start to look around again.

The Loan to Value ratio is still about 95%, so we would have to do a primary and second mortgage.  Neither G-man nor I really dig this idea.  But until we are closer to 80% LTV, that is probably our only option (beyond  bringing money to the table).  But if we really were hurting for money.....we could do it.
Best case scenario would be about $400 a month, or $4,800 year (roughly half way to my goal of finding an extra 9k per year).

Of course we looked into the Home Affordability program and didn't qualify because our loan wasn't funded through Freddie Mac or Sallie Mae.  And we were able to make our mortgage, it just stunk that so much went to interest.

Anybody have 2 mortgages because of the LTV?  What brought you to the decision?  How do you like it?

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